Chandigarh

DF-II

CC/573/2013

Deepshikha Garg - Complainant(s)

Versus

Bajaj Allianz Life Insurance Company Limited - Opp.Party(s)

Sandeep Bhardwaj,Adv

04 Jan 2017

ORDER

DISTRICT CONSUMER DISPUTES REDRESSAL FORUM-II, U.T. CHANDIGARH

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Consumer Complaint  No	:	573 of 2013
Date  of  Institution	:	13.12.2013
Date   of   Decision	:	4.01.2017

 

 

 Deepshikha Garg wife of Sh.Naveen Goel, C/o House NO.57, Sector 69, SAS Nagar, Mohali, Punjab.

             …..Complainant

Versus

 1]  Bajaj Allianz Life Insurance Company Limited, SCO No.139-140, 2^nd Floor, Sector 8-C, Chandigarh, through its Manager/Authorised Representative.

 

2]  Bajaj Allianz Life Insurance Company Limited, Regd. & Head Office : GE Plaza, Airport Road, Yerawada, Pune 411006

3] Insurance Regulatory Development Authority of India, 3^rd floor, Parisrama Bhawan, Basheer Bagh, Hyderabad- 500004, Telangana State, India through its Manager/authorized representative.

Opposite Parties

 

BEFORE:  SH.RAJAN DEWAN                 PRESIDENT

         SH. RAVINDER SINGH             MEMBER

 

 

For complainant(s)      :     Sh. Sandeep Bhardwaj, Adv.  

 

For OP No.1 &2          :     Sh. Varun Chawla, Adv.

 

For OP No.3             :     Ex-parte.  

 

 

PER RAVINDER SINGH, MEMBER

 

 

     In nutshell, the complainant was approached by OPs No.1&2 through its representative to invest the amount in insurance policy which is a kind of fixed deposit floated by the Opposite Parties in which there are benefits like fixed deposit along with insurance cover. Being allured by the said offer made by the OP No.1&2, the complainant paid an amount of Rs.25,000/-. The agent of the OPs got her signatures on blank form after getting the general information, but did not take income proof, residence proof, legal name etc. and without disclosing detail terms and conditions applicable thereto.. It is averred that the complainant received the policy document after a long span of time (Ann.C-1).  It is also averred that the OPs have issued the policies but no verification has been done nor has any proof been attached with regard to the health and income of the complainant and thus ignored KYC norms of IRDA (Insurance Regulatory and Development Authority) (Ann.C-3). It is submitted that the OPs also did not followed & complied with the circular/instructions issued by the IRDA (Ann.C-4 & C-5) while issuing the policy.  It is also submitted that the complainant paid regular premium to the OPs for four years but the OPs paid back very less amount in compare to the deposited premium, whereas the IRDA has issued guidelines on 1.7.2010 (Ann.C-6) clarifying the position as to how the charges are to be deducted while refunding the amount to the consumers at the time of discontinuance of the insurance policy. In the case of the complainant, the policy stands terminated in fifth year and hence no charges can be deducted on the refund value. It is also pleaded that the complainant procured one statement of account dated 28.9.2013 (Ann.C-7) in which no calculation or statement has been provided towards the amount used and how the amount has suffered loss.  Hence, the present complaiant has been filed alleging gross deficiency in service and unfair trade practice on the part of the OPs.

2.     The Opposite Parties No.1&2 have filed joint reply and took objection that the complaint is time barred. It is stated that the complainant after fully understanding the features, benefits and terms & conditions of Unit Linked Regular Premium “Century Plus” plan, herself out of her free will, proposed for the said policy and opted to pay regular yearly premium @Rs.25,000/- for term of 10 years and accordingly the policy was issued in the year 2008.  That the original policy bond containing terms & conditions of the contract was admittedly received by the complainant and incase she was dis-satisfied with the terms & conditions of the contract, she could have given written notice for cancellation of the policy within 15 days of receipt of the policy bond, but she never raised any objection for more than 6 long years and continued paying premium and surrendered the policy in January, 2013.  It is pleaded that the policy in question was issued prior to the issuance of the circular dated 01.07.2010 and this circular does not apply to the polices issued prior to its issuance as it does not a retrospective effect.  It is admitted that the complainant paid 4 regular premium.  It is also pleaded that the complainant submitted a request for surrender of the policy on 13.2.2013 and the same was expeditiously processed as per the terms & conditions of the policy and permissible surrender value amounting to Rs.1,13,330/- was credited in the bank account of the complainant which has admittedly been received by her without raising any dispute or protest.  Pleading no deficiency in service and denying rest of the allegations of the complainant, it is prayed that the complaint be dismissed.
3.     None has appeared on behalf of OP No.3 despite being duly served. As such OP No.3 was proceeded against exparte vide order dated 9.9.2016.
4.     Contesting parties led evidence in support of their contentions.
5.     We have heard the ld. Counsel for the contesting parties and have also perused the record.
6.     The present complaint was allowed vide order dated 29.2.2016 by this Forum with following directions:-

“[a] To calculate the surrender value of the policy of the complainant in terms of IRDA Regulation 2010 & 2013, reproduced above, and pay the remaining amount of such surrender value after deducing Rs.1,13,330.47, along with interest @12% p.a. from 28.9.2013 till it is paid. 

 

[b] To pay an amount of Rs.25,000/- to the complainant as consolidated amount of compensation for causing mental agony and harassment on account of deficiency in service;

 [c] To pay litigation expenses to the tune of Rs.7,000/-”

 

7.         The Hon’ble State Commission vide order dated 19.7.2016 in appeal NO, 138 of 2016 remitted the matter back to this Forum for fresh decision keeping into consideration the details/statement of account submitted by the OPs No.1&2/appellants in the appeal.
8.      The details of statement of account as on  18.7.2016 submitted by Bajaj Allianz Life Insurance Company Ltd. OPs NO.1&2 are reproduced below;

Transaction ID	Req ID	Transaction	Amount (Rs)	Allocation rate %	Net investment (Rs)	Unit price	Allocated unit
03 –Jan-08		New business regular	25000	98	24500	11.2030	2186.9142
05-Jan-09		Regular premium renewal year	25000	98	24500	9.2170	2658.1317
13-Jan-10		Regular premium renewal year	25000	100	25000	12.2649	2038.3370
31-Jan-11		Regular premium renewal year	25000	100	25000	13.0537	1915.1658
14-Feb-13	4860399	Surrender regular			-113330.47	14.7060	-7706.4104
		Service tax charge			-975.18		-82.1562
		Total mortality charge			-818.67		-69.2664
		Total policy Admin charge			-11119.40		-940.7157
					Balance c/f		.000

 

9.     From the perusal of facts as well as the statement of account afore-extracted, it transpires that the complainant booked the policy on 3.1.2008 and deposited four annual installments of Rs.25000/- till 31.1.2011. The complainant did not pay subscription due on January 2012 and as such the policy stands terminated in the 5^th year. The complainant requested the OPs No.1&2 on  14.2.2013 for payment of her charges under the policy and accordingly the OPs No.1&2 deposited Rs.1,13,330/- in her account after deducting Rs.12,913/-

 

10.     As per notification dated 1^st July, 2010 of Insurance Regulatory Development Authority (IRDA), the maximum discontinuation charges for the policies having annual premium upto Rs.25000/- is as below:-

Where the policy is discontinued during the policy year.	Maximum Discontinuance charges for the policies having annualized premium up to Rs.25000/-
1	Lower of 20% (AP or FV) subject to a maximum of Rs.3000.
2	Lower of 15% (AP or FV) subject to a maximum of Rs.2000.
3	Lower of 10% (AP or FV) subject to a maximum of Rs.1500.
4	Lower of 5% (AP or FV) subject to a maximum of Rs.1000.
5 and onwards	NIL

 

11.   As is apparent from record, the policy in question stands terminated in January, 2012 and as such as per the guidelines ibid of the IRDA  nocharges on account of discontinuation of policy including administration charges or mortality charges thereof are leviable in the present case.

 

12.     From the perusal of statement of account,  it also further transpires that the complainant deposited Rs.25,000/- as installments  on 3.1.2008 and 5.1.2009  respectively  but OPs No.1&2 had only invested Rs.24500/- in units on both occasions by deducting Rs.500/-  from the originally deposited installments without  giving any detail and logical justification thereof.

 

 

13.     The complainant in his complaint stated that she was not communicated any terms and conditions of the policy and categorically named one Mr. Gaurav Kumar a representative of OPs No.1&2 for misleading her, while getting her signature on the blank papers for the policy, which amounts to concealment of material information.    The OPs No.1&2 have failed to rebut the contentions raised by the complainant in the reply filed by them. The OPs NO.1&2 have not placed on record any evidence or affidavit of any official in proof  that the complainant was duly explained and provided the relevant terms and conditions pertaining to the policy in question.

 

14.     From the perusal of evidence on record, it is obvious that the there was total lack of transparency in executing the policy by the OPs No.1&2. OPs No.1&2 cannot thrust upon and penalize the complainant through their unreasonable terms and conditions.

 

 

15.     Keeping in view, the facts and circumstances, of the case, we are of the view that there is no new fact which may warrant any change in directions issued by this Forum vide order dated 29.2.2016.  .

 

16.     The OPs No.1&2 are directed to comply with the directions as given in the earlier order passed by this Forum in the instant complaint within 30 days from the date of receipt of certified copy of this order.  

 

17.     The certified copy of this order be sent to the parties free of charge, after which the file be consigned.

Announced

4.1.2017

                                            Sd/-

 (RAJAN DEWAN)

PRESIDENT

 

 

Sd/-

(RAVINDER SINGH)

MEMBER